Magazine article American Banker

Database in Ill. Predator Statute Is Months Away

Magazine article American Banker

Database in Ill. Predator Statute Is Months Away

Article excerpt

Though Illinois' new anti-predatory-lending law, which the industry widely opposed, goes into effect Jan. 1, it will be months before lenders, mortgage brokers, and title companies have to do things differently.

That's because the law's most controversial aspect, a database that would vet consumers in the most foreclosure-scarred Chicago neighborhoods for mandatory credit counseling, will not be up and running right away.

Several things have to happen first.

The law requires the Illinois Department of Financial and Professional Regulation to designate which communities will be included in the database by Jan. 31. "Once those communities are named, the rules implementing the program" need to be completed, said Susan Hofer, a spokeswoman for the department.

The agency released a proposed rule for public comment last month. The comment period ended Dec. 12. The proposed rule and comments were forwarded to the state legislature's joint committee on administrative rules last week, Ms. Hofer said. This body has 45 days "to review, assess, ask questions, and make comments" on the rule, which could take effect within the 45 days "unless the committee asks for information that requires a delay," she said.

Once the department chooses the areas that the database would track, Ms. Hofer said, it will have to teach mortgage lenders, credit counselors, and title agents how to use it.

And even when all the pieces are in place, the database will not start immediately. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.